I am a new trader and have just started a very interesting book -- READING PRICE CHARTS BAR BY BAR by Al Brooks. I Know instinctively that this guy is for real. I also know that with all my determination I am not yet for real. My immediate problem is that the book is written for someone with more chart knowledge than I currently posses -- particularly candle charts and patterns. I have studied five of Joe Ross' books with great interest yet feel that I need to have a grounding in signal bars, reversal bars and the like in order to have the type of entries I want. Can anyone suggest a book I can read on candle bars and patterns that is one step less advanced than Al Brooks' book. BTW, I have no issue with Brooks. Right on the front cover in a sub title he makes it clear that he is writing for the serious trader. Now, a bit about how I want to go forward: The plan is to use price action with very few technical additions to day trade primarily Euro/Dollar. I hope to master a set-up or two or three early on and trade two contracts off a five-minute chart with stops of eight ticks or less. I hope to cash the first contract with a limit order four or five ticks in the money and swing trade the second contract. If I can hold on through the trade back I want to use natural support as my going forward stop. I hope to catch a long ride and am willing to risk a fair bit of paper profit to get my seat. But I am not willing to risk much or for very long in a trade that is not moving my way. The plan is to trade out ASAP if the trade drags and I'm stuck wishin' and hopin' to cash contract one. The thinking is if the trade can't produce four ticks pretty damn quick I want out. I want to trade out of both contracts immediately. OK ... all of this sounds lovely on paper ... lol. If you have come this far, please do three things for me: 1) Recommend a book that is more basic than BAR BY BAR yet one that puts a premium on price action not traditional technical analysis. 2) Tell me how the real world, trading real cash is going to rip my well laid plains to shreds. Might as well know what to expect ... lol. 3) Answe the $64,000 question: Once I cas contract one for small dollars how much heat should I be prepared to take to keep my seat on the train for contract two. I know it is hard to pinpoint but even some rage would be nice. Thanks ...
stevesbg wrote an excellent Journal which includes using multiple-time frames as well as intermarket analysis for trading the ES. Link to Journal You might want to avail yourself of its information before it gets buried under the rubbish. Good Luck
You might also want to spend some time on the ES Journal thread, where they make market commentary and Live Calls. The purpose is not trade off of their calls, of course, it is to see how people trade, and to assit you in determining your prospective style of trading. Here's the link. Link to ES Journal But it's also pretty easy to find in the Journal's section of ET, and quite often will be on the front pae during the market action. You've got a long journey ahead of you. Good Luck
So who's this Al Brooks anyhow? He has just the one book that came out last month, the one you "just know is for real". What does he say in the book, you're brand new here, maybe by way of introduction you can share with us what this author that nobody has heard from before in any field has to say... nothing like new blood..
1) There are none-can you guess why? 2) Your stops will be hit most of the time. 3) Why put on 2 contracts for every trade-that is what the fools do-and what the stop runners love. The General
I have known Al Brooks for years and he is a solid and highly profitable trader. You won't find him on chat boards as he does not find them to be a productive use of time. The book is highly detailed and will take some work to grasp his ideas but IMO it would be well worth the effort. The key point he makes is if a trader understands price action bar-by-bar there is no need to cloud cognition with derivatives of price. Many excellent and sucessful traders use various derivatives and technical studies and many use multiple timeframes. Al doesn't, but as any professional trader knows, there are as many ways to trade as there are traders. The key is to find out what works for YOU. If you want to study candlesticks, Steve Nisons books on the subject are excellent.
Wow, two brand new people are here touting a brand new book from a brand new author... makes me want to RUN RIGHT OUT AND GET IT.. I'll order it right now and I won't be able to sleep until it gets here....... no really... Oh, and Wow, yes, I want to read up on candlesticks too.. maybe I can save on shipping if I get the two books together.. would that raise the author's rating on Amazon if I bought those books together and associated his name with the [really well known] candlestick author? Personally, I use a computer to trade with. It is good at generating meta data that I can chart right along with the bars and those tell me everything I need to know all day but hey, if this brand new author doesn't need that... then Kudos to him, yes, applause and all that shit, send him an award while you're at it...